Requires the metropolitan commuter transportation authority to contract with a certified independent public accounting firm for the provision of an independent, comprehensive, forensic audit of the authority to examine redundancies, inefficiencies, and the authority's governance system.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6088
SPONSOR: Ra TITLE OF BILL:
An act to amend the public authorities law, in relation to requiring an
independent forensic audit of the metropolitan commuter transportation
authority; and providing for the repeal of such provisions upon expira-
tion thereof
PURPOSE OR GENERAL IDEA OF BILL:
Requires the metropolitan transportation authority to undertake an inde-
pendent forensic audit performed by a certified independent public
accounting firm and requires such accounting firm to develop a report
containing an analysis of redundancies and inefficiencies, suggestions
to reduce redundancies and inefficiencies, and recommendations for
alternative governance structures within the authority.
SUMMARY OF PROVISIONS:
Amends the public authorities law to require the metropolitan transpor-
tation authority to contract with a certified independent accounting
firm to perform a comprehensive, forensic audit. The certified independ-
ent accounting firm is prohibited from providing audit services if the
lead or coordinating audit partner has performed audit services for the
authority within the ten previous years. Such firm is prohibited from
performing any non-audit services for the authority while performing
such audit. Such firm is directed to Compile a report of its findings,
and such report is to include an analysis of redundancies and ineffi-
ciencies within the authority, suggestions and recommendations to reduce
redundancies and inefficiencies, and six governance action plan
proposals for alternative governance structures to be adopted by the
authority.
JUSTIFICATION:
The metropolitan transportation authority has experienced significant
delays and impediments'on its many projects. To reduce inefficiencies
and delays, the authority must be required to undergo an extensive inde-
pendent forensic audit to determine redundancies and other factors that
impact the delivery and implementation of the authority's services. For
example, as of 2024, the authority loses approximately $700 million
annually due to fare evasion alone. We have seen frequent abuses of
overtime, and the authority is struggling to balance its operating budg-
et and capital program. The governance structure of the authority should
be reexamined to assist in formulating solutions to such issues,
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Additional costs to the metropolitan transportation authority for
contracting with a certified independent public accounting firm to
perform forensic audit and analysis services.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed two years after such date.
